Excerpt taken from Jeff Nicholson
 The Federal Open Market Committee really stepped up and dropped the Federal Funds rate by .5% from 5.25% to 4.75%.  This means that short term money tied to Prime will be going down such as construction loans, home equity loans, car loans and credit card.  The mortgage market was expecting a .25% reduction and responded by easing slightly.  If you are planning on waiting a while for rates and prices to drop – You should remember, the advantage to buying now is that if rates do continue trending down you can always refinance in the future and the incentives being offered by sellers right now may not be available as this happens.